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reference cycle (E3)<br />The basic series of economic statistics, e.g. GROSS NATIONAL PRODUCT 01" industrial OUtput, which is chosen to indicate fluctuations in an economy.<br /><em>See also:</em> coincident indicators; economic indicators; lagging indica tor; leading indicator
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price-consumption curve (DO)<br />The relationship between changes in relative prices and the consumption of two goods. INDIFFERENCE CURVES (11, 12, 13 and 14) and BUDGET LINEs are used to trace the path of consumption (the price-consump- tion curve, PCC). From this curve can be derived a DEMAND cuRvE DD. The demand curve plots quantity demanded against price, which is the amount of money a consumer will give up to obtain one unit of a good. Thus at a consumption level of 1, a point on the demand curve can be obtained by measuring the distance between PCC and the top line, parallel to the horizontal axis, which encloses it. When two units of good B are demanded, a point on the demand curve is obtained by measuring half the distance between PCC and the top line, and so on.<br /><em>See also:</em> income consumption curve
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